"You bought a Big Mac in McDonald's, but you can't just go over to Burger King and be like, 'Now make me a Big Mac,'" one developer told Insider.
Palihapitiya cited Amazon's decision to ban Visa credit cards in the UK due to high transaction fees as one reason for his view.
Musk was weighing in on a Twitter discussion joined by bitcoin enthusiast Jack Dorsey and dogecoin creator Billy Markus, among others.
Marc Andreessen, the founder of venture capital firm a16z, blocked Dorsey back, to which he replied, "I'm officially banned from web3."
"I currently am unable to see a compelling metaverse situation," Musk told The Babylon Bee. "I don't get it. Maybe I will, but I don't get it yet."
When Musk asked if anyone's seen Web3, Dorsey said, "It's somewhere between a and z" — possibly alluding to VC firm Andreessen Horowitz' crypto push.
The internet's next chapter will be all about Web3, the metaverse, NFT's, and cryptocurrencies — and less about powerhouses like Facebook and Google.
"We're going to start using cryptocurrencies as currencies" in the metaverse, BofA's Haim Israel predicted.
"eew eew llams a evah I" Cohen, the Chewy cofounder and GameStop chairman, posted on Twitter Monday.
The new team, called Twitter Crypto, is aimed at being the center of excellence for "all things blockchain and web3," Financial Times reported.
NFTs are the digital key to unlocking the metaverse, making people owners, not just renters, on the internet.